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5. Highland Co. has identified the following overhead costs and activity drivers for next year. Activities Setting up Expected Cost $150,000 Driver number of setups

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5. Highland Co. has identified the following overhead costs and activity drivers for next year. Activities Setting up Expected Cost $150,000 Driver number of setups Amount of driver 1,200 Ordering $40,000 number of orders 10,000 Maintenance $200,000 machine hours 16,000 Power $20,000 Kilowatt hours 100,000 The following table contains information about the two product lines completed during the year. Units produced Direct materials Direct labor Direct labor hours Machine Hours Number of setups Number of orders Kilowatt hours Model S 375 $2,250 $3,000 90 180 Model T 300 $2,500 $1,875 110 150 8 15 120 Highland Co.'s normal activity is 20,000 direct labor hours. Required: (1) Compute the predetermined plant-wide overhead rate based on direct labor hours. (2) Determine the overhead cost per unit for each product using direct labor hours (3) Determine the unit cost for each product using direct labor hours. (4) Identify the type of each activity. Compute the activity rates. (5) Determine the amount of maintenance costs assigned to Model T. (6) Determine the overhead cost per unit for each product using activity-based costing, (7) Determine the unit cost for each product using activity-based costing

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